Benefits for People on a Low Income in the UK

The main income-related benefit for working-age people is Universal Credit, which provides support for single people, couples, and families on a low income. You can claim Universal Credit whether you are in work or out of work — the amount you receive adjusts based on your earnings. For people over State Pension age, Pension Credit can top up your income to a guaranteed minimum. Both benefits can include additional elements for housing, disability, caring responsibilities, and children.

Beyond income support, there are benefits that help with specific costs. Free school meals are available for children of families receiving qualifying benefits. The Healthy Start scheme provides vouchers for milk, fruit, and vitamins for families with young children. Council Tax Reduction can reduce your Council Tax bill by up to 100%. The Warm Home Discount provides an annual £150 discount on electricity bills for eligible households. Many of these benefits are linked — claiming one may automatically qualify you for others.

If you are working but on a low income, Universal Credit is designed to top up your earnings. You may also be eligible for help with childcare costs (up to 85% of childcare costs through UC). The work allowance means you can earn a certain amount before your UC starts to reduce, and the taper rate of 55p in the pound means you always keep some of any extra earnings. It is worth checking your eligibility even if you are working, as many working families are entitled to support they do not claim.